5/28/2020 Two ongoing civil fraud cases involving Premier Financial Alliance have been consolidated into a single class-action. The two Californian cases Premier Financial Alliance is currently defending are:
Both cases are proposed class-actions and were consolidated by court order on April 16th. The same day the cases were consolidated, Girard Sharp LLP was appointed Interim Class Counsel. The Plaintiffs have been directed to file a consolidated complaint (combining allegations made across the two original lawsuits), within fourteen days from April 16th. Premier Financial Alliance have been directed to file their response to the lawsuit within twenty-one days of the filing. 12/26/2019 In response to Plaintiffs Rui Chen’s and Wenjian Gozales’ pyramid scheme lawsuit, Premier Financial Alliance attempted to compel arbitration. The motion was denied January 22nd, 2019, prompting PFA to file a Motion for Reconsideration. On December 19th, PFA’s Motion for Reconsideration was also denied. The decision to deny reconsideration was based on PFA’s
This is based on one of the Plaintiffs in a parallel fraud case alleging the affiliate who recruited them signed them up. I.e. they never personally agreed to PFA’s AMA. In the event reconsideration was denied, PFA sought a venue transfer from California to Georgia. This was again based on a clause in the AMA, which lead to it being denied for the same reason as arbitration. PFA’s argument that the company and its employees are based out of Georgia was also rejected.
The court also noted that “so many” of PFA’s affiliates reside in California. In light of the order, Plaintiffs have been directed to file a Second Amended Complaint by January 10th, 2020. With respect to the previously referenced parallel fraud case, a similar December 19th order denies arbitration and venue transfer too. A case management conference has been scheduled for January 13th, 2020. Stay tuned for updates as we continue to track both cases going forward. Comments
Nov 2nd, 2019 at 3:51 am (Q)
Most of them lie. they will never able to proof by showing their tax return. Nov 20th, 2019 at 10:36 am (Q)
The way its presented, its very shady. I would like to give feed back from a California location. Can you get me in contact with with the Attorney to talk more details. I had a recruiter pay for my licenses to try and hire me. At the same time time trying to convince me to give 25 of my family members and friend’s information. Very pushy, shady and have no shame. Its all about the money and them getting you to recruit as many people asap… Nov 20th, 2019 at 11:55 am (Q) Uh if you want to get in touch with an attorney attached to the suit you’ll have to do that on your own. Nov 25th, 2019 at 4:12 pm (Q) I need to talk to a lawyer who is suing this company as of right now they have taken my $125 trying to get a list of family members and now they are trying to get my 401 k from my job. I just got a text. I get one every day And they want me to pay for all these party. $300 and up. Please email me I need help with these fast talking people. Ok what the attorney name I will talk with him. Thanks Patricia Nov 25th, 2019 at 8:59 pm (Q) I don’t keep legal filings once I’ve reported on them. You’ll have to acquire case information on your own if you want attorney details. Source: https://behindmlm.com/companies/premier-financial-alliance-denied-arbitration-and-venue-change/ 7/07/2019 New Premier Financial Alliance suit claims Asian immigrants targeted By Oz A new class-action pyramid lawsuit was filed against Premier Financial Alliance earlier this year. In addition to covering that, today we’re also revisiting the original 2018 Premier Financial Alliance pyramid lawsuit. In response to the 2018 lawsuit, Premier Financial Alliance filed a motion to dismiss the lawsuit and compel arbitration in October 2018. Following the filing of an amended complaint, a second motion to dismiss and compel arbitration was filed later that same month. On November 28th defendants A JW Production, LLC, Bill Hong, The Consortium Group, LLC, Jack Wu, Rex Wu, and Lan Zhang, filed their own motion requesting the same. On January 22nd, 2019, the court denied both motions. Based on the evidence submitted, the court ruled that the Premier Financial Alliance defendants had ‘failed to establish the existence of an agreement to arbitrate‘
On February 28th, 2019, a new class-action was filed by plaintiffs Youxiang Eileen Wang and Biyun Zong. Wang and Zong, both New Jersey residents, claim Premier Financial Alliance is a “pyramid scheme” they were “lured” into.
The business model described in the lawsuit is that of your typical “no retail” MLM pyramid scheme.
If that 95% figure is anywhere remotely accurate, Premier Financial Alliance appears to be a prime target for an FTC shutdown. In BehindMLM’s own May 2016 Premier Financial Alliance review, I opined
Sounds like that exactly what’s going on. On the original 2018 pyramid scheme case docket, an administrative motion was filed on March 19th. The motion sough to relate the 2018 and 2019 cases, and was granted on March 26th. This means that the same Californian Judge will hear both cases. On May 6th an initial case management conference for both cases was held. At the hearing defendants Life Insurance Company of the Southwest, National Life Insurance Company, NLV Financial Corporation and National Life Holding Company were granted a motion to dismiss. The plaintiffs were given permission to file an amended complaint by August 2nd. However the same order also stayed the case, pending outcome of a motion to compel arbitration in the 2019 pyramid case. The last significant filing in the 2018 case is a May 28th motion by the Premier Financial Alliance defendants, The motion requests permission to seek reconsideration of the earlier arbitration denial decision, or in the alternative a transfer of the case to Georgia. Plaintiffs Gonzales and Chen have opposed the motion, and a hearing to decide the matter has been scheduled for July 19th. Switching over to the 2019 case, the motion to compel arbitration that stayed the 2018 case was filed by Premier Financial Alliance on May 28th. A hearing to decide the arbitration matter was scheduled for July 19th. As per a July 1st order however, the hearing was continued till August 20th. To sumarize, Premier Financial Alliance is facing two separate lawsuits that accuse it of being a pyramid scheme. The most damning allegations in the new 2019 lawsuit are the targeting of Asian immigrants, and claim that 95% of sales within Premier Financial Alliance are affiliate purchases.
Lan Zhang appears to be a top Premier Financial Alliance affiliate. A 2016 video cites Zhang as a Premier Financial Alliance “President”, and depicts her receiving a “special birthday present” from PFA founder and CEO, David Carroll. I’ll be checking in for updates on both cases on July 19th, after which our next scheduled case update will be on or around August 20th. Stay tuned… * (7/07/2019) Note: https://www.mitbbs.com/article_t/SanFrancisco/34629529.html 9/25/2018 Premier Financial Alliance “classic pyramid scheme” lawsuit filed By Oz A recently filed RICO class-action lawsuit alleges Premier Financial Alliance is a “particularly egregious classic pyramid scheme”. The June 25th class-action lawsuit was filed by Plaintiffs Rui Chen and Wenjian Gozales in California. Chen joined Premier Financial Alliance in 2017 and Gonzales in late 2017 or early 2018. Both claim to have been deceived into believing PFA was a “legitimate way to make money”. Defendants named in the lawsuit include Premier Financial Alliance, David Caroll (CEO and Founder), Jack Wu (“chairman and ringleader”) and his company AJW Productions, Rex Wu (field chairman), Lan Zhang (an “original member” of PFA), Bill Hong (conspirator).
National Life Group Insurance Company, also a named defendant, is cited as the provider of PFA’s insurance products,
According to Chen and Gonzales, ‘100% of (Premier Financial Alliance’s) revenues (comes) from chain recruitment‘.
This, the lawsuit states, comes at the expense of selling insurance policies to retail customers. The end result? Premier Financial Alliance affiliates are promised
A specific example cited in the lawsuit is a representation allegedly made by PFA, by which
BehindMLM reviewed Premier Financial Alliance in 2016. In our review we found an astonishing lack of information provided to potential PFA retail customers or indeed, whether retail sales were even possible at all. This naturally raised the question of what Premier Financial Alliance’s core priority was. Chen and Gonzales’ lawsuit attributes the lack of retail disclosure to PFA
PFA themselves don’t sell the insurance policies, hence the lawsuit claim that Premier Financial Alliance has ‘never marketed or sold insurance policies to any retail customers‘.
Having operated for some thirty years, as a result of PFA’s business model the lawsuit alleges
What is described in the lawsuit of PFA business model is that of your typical autoship recruitment scheme.
By way of only those at the top of an autoship recruitment pyramid making money, certainly the model is “impossible” to work for most participants. Plaintiff’s Gonzales and Chen are seeking to represent a class of similarly situated Premier Financial Alliance victims, of whom they estimate there are over 25,000. Premier Financial Alliance affiliates who qualify for the class-action include any who signed up from June 25th, 2014 and ‘paid more to the scheme than the amount of money they received from PFA‘. Stated aims of the class-action include establishing
Looking at the case docket, Premier Financial Alliance have thus far failed to respond to the lawsuit. Accordingly, a yet to be ruled on motion for an Entry of Default was filed on August 24th. We’ve added the lawsuit to our list of cases we’re following, so stay tuned for further updates as the case progresses. Source: https://behindmlm.com/companies/premier-financial-alliance-classic-pyramid-scheme-lawsuit-filed/ 10/23/2018 7/25/2018 在美国华人微信朋友圈经常看到,才干一年就年薪15万美元,年薪100万美元的PFA理财公司,终于出事了。 美国当地时间6月25日,居住在美国加州的Rui Chen和Wenjian Gonzales通过代理律师向加州北部地区法院提交了一份长达29页起诉书,将金融理财公司Premier Financial Alliance及其公司五名主要成员集体告上法庭,起诉他们进行非法传销。 起诉书同时也把为PFA提供产品的国家人寿(national life group)保险公司列为共同被告,小编一身冷汗,这可是全美华人圈里最大传销公司呀,这要倒闭了,多少人的钱血本无归呀。 据起诉文件,其中列出的被告分别为PFA公司以及David Carroll,Jack Wu,Rex Wu,Lan Zhang,Bill Hong,AJW公司,美国国家人寿保险公司。起诉书中称,上诉五人为传销计划核心成员,AJW为PFA核心成员为收钱成立的公司。 通过PFA在社交媒体上的宣传查询到,Jack Wu是PFA行政主席;Rex Wu为行政总监;Lan Zhang,全美资深总裁;Bill Hong,全美总裁。多名在美华人表示,这几个人就是PFA成员常常宣传的公司大咖。 PFA的宣传材料,张岚(Lan Zhang)人称岚姐,年收入300万美金!的介绍为,美国著名女领袖型企业家,被誉为美国华人“创业奇才”。六年前从地产行业副总裁跨界美国金融创业,创造了美国金融业的奇迹,被誉为“改变游戏规则的人”,被称为“点石成金”的创业导师,美国金融界的传奇女王。常说:“ 华人在美国不缺本身,缺的是PFA这个伯乐和平台” 起诉书中原告指控被告PFA典型的金字塔骗,局起诉书中称,这是一个金字塔骗局计划,原告Rui Chen和Wenjian Gonzales基于PFA极具诱惑性的招募信息以及希望获得财务自由的信念,在2017年至2018年期间加入PFA。 根据起诉书中称,PFA的每个成员都有上线和下线,其成员级别分为基础级、经理级和最高级。基础级包括四类Career Associate, Field Associate, Senior Associate和 Provisional Field Director。 一个基础级别的成员招募的下线越多,他们赚的钱就越多,并且级别能够得到提升,经理级包括预备经理和高级经理。最高级别包括区域经理, 地区经理,全美总监和全美总裁。所有成员只有通过招募下线才能晋升级别。 根据起诉书的陈述以及多名华人介绍,要成为PFA的成员,首先需要交纳125美金不可退还的费用。加入后,会被要求购买公司代理的保险产品,用于招募其他潜在的下线。起诉书中称,受害人购买保险的保费一部分进入了被告账户。 根据这份起诉书中表述,加入PFA的成员如果想获得佣金或者奖励,必须要招募到6个下线,同时要考取到州销售保险的许可证。而且还要在加入的第一个月内,至少销售出去3份保单。但PFA要求成员购买的这款国家人寿的“生前利益万全保”比市场价高许多,他们根本不可能把这样的产品销售给普通消费者,除了自己的家人和朋友。 PFA还有一套后台数据库,追踪和显示成员招募到底下线人数以及通过招募下线获得的收入。起诉书中称,被告通过后台数据库,鼓励成员招募下线,他们的绩效指标,演示和报告都表明,赚钱的唯一途径就是招募下线。
在美华人亲述自己经历一: 由于本人保险到期,看到有一个介绍理财型保险很不错,于是就加了微信联系经纪人JESSICA 。 加上对方就提出见面详聊帮我规划方案。但是问具体保费什么的对方又好像欲言又止而又模棱两可的感觉。买东西总是要多看几家货比三家的,于是又联系了另外的一些机构,经过几天的了解比较我的保险事宜也落实下来了,选了另外一家。我也没有再联系这个保险经纪人。 过了一个周末,JESSICA又联系我了,我就直接说谢谢你的时间,经过了解我觉得某个其他的产品比较适合自己,已经买了其他的保险了,就婉谢了她。然后JESSICA就问我现在做什么工作,有没有兴趣做寿险兼职经纪人,说在不耽误自己全职工作的同时还能兼职做保险经纪人赚外快,听上去还不错。于是就说有兴趣进一步了解,对方就告知具体的公司地址时间面试。 然后就在约定时间到了对方公司。 去了之后对方就开始介绍一些前辈的成功经历,基本都是在经历1-12个月之间就实现了年薪10万,时间自由。 然后就是某位刚入职2年左右的前辈介绍她是如何加入这个公司,然后在几个月的时间就实现了月薪过万等等一些辉煌经历。还有他们公司加入的都是高管,高校毕业的硕士博士,现在的员工很多都是上市公司老板或者上市公司高管辞职加入了这个公司。 这个部门的经理曾经是珠宝销售,所以家里有很多珠宝,后来又是房地产经纪,所以家里很多房子,现在加入了这个金融公司,所以现在账户上就是有很多钱。还有公司的福利也是好的不行,每年都有欧洲豪华游,工作表现好的员工有奖励劳力士手表巴拉巴拉各种天花乱坠,有免费的公司股权,以后公司上市了就不得了了。同时工作人员还指着微信上这个JESSICA说她是一个有两个孩子的单亲妈妈加入这个公司一年多,现在也是年薪10多万,并且在这个公司认识了一个客人现在成了她的男朋友给她买了100多万的房子。
然后这些讲完之后就介绍了一款该公司代理的万能保险,保费最低每个月250,连续交15年。当我真正对这个保险产品感兴趣,问一些细节的时候,讲解的人员却说不需要了解这些细节的东西,你只管买就是了,人家都是百年的保险公司,所以不用担心什么的。 讲完这个工作人员就说了加入公司需要先交125元的会费,然后拿到保险执照了以后公司会把这个钱返还给大家的。然后就是要了我的ID和银行卡sign in。当时没有说买保险的事情,因为我觉得这个保险我还需要回头再详细了解下回家和家人商量下。 然后验证完我的id信息之后就跟我介绍了这个公司的系统,那就是加入的时候必须要自己买一份这个万能保险,并且是必须要买,这是加入这个公司的前提条件,满足这个前提条件以后加入这个公司第一个月=就需要要介绍5个人来这个公司,然后这5个人并且也需要买一份这个保险。也就是说在加入这个公司的第一个月自己要买一份每个月支付保险最低250元的万能保险,然后还要联系5个人(用他们的话来说就是你直接给你家里父母伴侣孩子都买了就够了5个人了),这5个人分别购买一份万能险(月费最低250,连续支付15年).然后到了第二个月我就有资格参加保险考试了。 当时工作人员还告诉我找客人只能找华人,最好是25-55岁之间的女性,已婚的最好。 不能找白人,黑人,墨西哥人。大概就是这么回事情,然后我就离开了这个公司。回家就上网在google输入PFA想了解下这个公司的一些情况,结果就有很多人在网上曝光其实这是一个传销公司。 再结合那些工作人员的说法,确定这就是一个传销公司,并且曾经多次被多个州政府起诉,起诉的原因包括“销售非授权证券”, “用免费午餐讲座误导客户” 等等。还好发现的早,果断放弃逃过一劫。但是我还是被她们玩了(这也怪自己太大意),第二天我查我的银行卡发现有一笔交易是他们公司刷的125的费用,时间是我去PFA的那天,费用名称是礼品服务费。 于是我就联系当时微信上的JESSICA要求了解情况,她就说任何去他们公司的人都需要交这笔费用,就算不打算在他们这里做保险经纪,这笔费用也不返还。然后我就问她这是什么费用,你邀请我去你们公司面试兼职,然后你去收取我费用,这是什么费用,是干嘛的? 从来没有听说某个企业在在雇佣人才的时候还需要交钱。她就说无论怎么样这125就是不退还。我以商量的口吻问到可以跟你们的领导问一下吗?毕竟这个钱收的也不明不白啊。 并且我当时也没有输入银行卡密码,没有签字,也没有跟这个公司有签任何的合约之类的怎么就莫名其妙就要支付这笔钱,钱是小钱,但是也要清楚为什么付这个钱啊。然后Jessica就开始爆粗一大堆难以入耳的粗话,就因为这么莫名其妙的CHARGE我125块就出口成脏,然后就挂断电话。 当然了钱是不多 ,但是我是不会就这么饶了这些坑蒙拐骗的人的,由于发现的早那笔款还是在PROCESSING的状态,所以就联系银行claim要回自己的钱。自身经历警示那些在求职路上的同仁,华人骗子太多了,这也让我想到了PFA的人为什么说不要找白人,黑人,墨西哥人,他们就是心虚啊,鬼佬的话肯定要找他们麻烦的,觉得中国人好骗呀! 在美华人亲述自己经历二 华人Lynda生活在德州,她经常会在微信朋友圈等社交媒体上看到PFA的人发布其代理的保险产品、成功故事、晒豪车度假以及PFA核心成员的宣传信息,“感觉这些人特别炫富”。 她开始接触PFA,是因为和先生都觉得以前的保单保额太低,想再购买一份额度更大的。于是联系了一个此前通过社交媒体加了她微信的PFA成员,对方给她做了两份保单,一份是普通的,一份是其代理的产品的大额保单。 “对比看了后,发现他们的大额保单受益要比普通的高好几倍。”虽然也听说过PFA不好的传闻,但是Lynda在网上搜索提供产品的国家人寿保险公司,有很长的历史,“排名比较居中”。而且她觉得,就算PFA有问题,国家人寿不太可能欺骗消费者,这样他们是要负法律责任的。其实PFA是national life group ,是下面的一个agency,是个人都可以代理。 Lynda,自己生完二胎后到目前没有工作,也正在考虑重新开始工作。她联系的PFA成员了解到这个信息后,就邀请她加入PFA,表示兼职全职都可以。但Lynda说,交125美金成为PFA会员并不是想在该公司谋一份工作,而是对方告诉她,如果成为PFA会员,她可以获得返点,这样她每个月需要缴纳的保费就会大大降低。 5月28日交完125美金成为PFA会员后,她却被告知,她必须在30天内销售出5份保单,才能获得返点。Lynda想着自己一家四口,其他三个人每人一份,另一个人买两份就可以完成任务。于是她在6月28日之前给两个孩子和自己分别购买了一份200万美金保额的保单,给先生购买了两份保额为50万美金的保单。全家总共购买了价值700万美元的保单,她每个月需要支付约5000美金保费。 此前PFA的人称,只要她销售出去五份保单,每个月就可以返还她55%的保费,“这个返还率还是很诱人的。”当她完成了五份保单签单后,却又被告知,还需在30天内招募到5个人加入PFA,才能最终获得55%的返点。 Lynda说,对方一开始并没有告诉她拿到返点有这些条件,因此觉得“他们的行为存在欺骗”。多位华人告诉,Lynda遇到的是PFA的“5-5-30”晋升渠道,即加入后30天内卖出5份保单,找到5个下线。 由于不想拉人,Lynda一直在拖延。6月17日,当她在前述林女士的朋友圈看到PFA被起诉非法传销消息后,感到一阵后怕,并立即决定取消在PFA购买大额保单。 目前,法院已经受理此案,并于7月9日指派法官Donna M. Ryu负责审理此案。根据最新更新的案件信息显示,法院已经向被告提出传唤并发送了传票。 | Principal, Tel: (301)906-6889; (240)912-6290 Licensed in MD, VA, DC, PA WeChat ID: sunnychenyuqing NMLS # 1220187 HAN, Liu, CPA | 韩柳 President, Principal Loan Consultant, Leader Funding, Inc. 电话: (240) 784-6645 Rockville, MD Phone: 301-366-3497 |
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